Gateway Distriparks Updates on announcement regarding contract

With reference to the earlier announcement dated December 26, 2006 communicating receipt of letter of acceptance dated December 22, 2006 received from Punjab State Container & Warehousing Corporation Ltd (Punjab Conware) for engaging the Company as the Operations and Management Contractor for their Container Freight Station (CFS) at Navi Mumbai, Gateway Distriparks Ltd has announced that the Company has now signed the agreement on January 12, 2007 with Punjab Conware to Operate & Manage (O&M) their CFS at JNP, Dronagiri node, Navi Mumbai. The agreement will take effect on February 01, 2007 and will be valid for a period of 15 years. The Company has paid one-time upfront fee of Rs 35 crore to Punjab Conware on signing the agreement. Quarterly fees of Rs 2.50 Crores will be paid on February 01, 2007, on the commencement of the O & M agreement.

The CFS is located about 7 Km from JN Port and is well connected to the Port and National Highways. Besides a large container yard, the CFS also has covered storage area of 52,500 sq. meters, consisting of 4 warehouses.

Punjab Conware commenced operations in August 1999. During the year ended March 31, 2006, the CFS achieved throughput of 55,662 TEUs and EBIDTA of Rs 13.80 crore. Ernst & Young Pvt Ltd were the Financial Advisors to Conware to advise and manage the selection process.

Source : Equity Bulls

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